Mr Tallentire pleaded guilty to two charges of making an untrue statement in a registered prospectus and one charge of distributing advertisements which included an untrue statement. He will be sentenced on 15 March 2013.

"This case is a further illustration of the importance of holding to account those who are responsible for untrue statements made to investors in offer documents, particularly in cases such as this where the conduct is particularly serious and the market impact is great," Ms Moffat said.

The prosecution involving similar charges against other directors of Capital + Merchant Finance will begin on 11 February 2013.

Under the Securities Act, Owen Tallentire's conviction means he is automatically banned from managing companies for five years.

Mr Tallentire is currently serving a five year prison sentence after he was found guilty on two charges of theft by a person in a special relationship in a prosecution taken by the SFO.

Capital + Merchant Finance (in receivership and liquidation) owed $167.1 million to about 7500 investors when it was placed in receivership in November 2007.